Since the advent of the recent Dodd Frank guidelines, many hard money brokers and investors have resolved to only do non-owner business loans. We are still doing owner occupied first and second loans! If you have clients that do not fit into the guidelines that come with conventional lending, please give us a call. We are specialists in non-QM Lending.
The Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law in the summer of 2010 by the President of the United States. Along with other regulatory reforms, this Act created minimum standards for mortgages, including the Ability to Repay (ATR) rules and a Qualified Mortgage definition. The Consumer Financial Protection Bureau (CFPB) put these new rules into effect on January 10, 2014.
A Non-QM loan can help borrowers who have had credit issues in the past such as foreclosures, bankruptcy, late payments or other isolated credit issues. Non-QM loans also have underwriting guidelines that are different than the typical conventional or government type loans. These guidelines allow the lender to look at the entire loan picture for a borrower and not just their credit score and government underwriting matrices (DU or LP).
The Non-QM lending guidelines also look at the borrower’s income based on their type of employment and analyze their Ability to Repay (ATR) a loan according to its terms (based on many factors). This includes cash flows through personal and business bank accounts.
Self-employed borrowers typically have more complicated income structures that require different calculations than wage earners. This type of income often times does not qualify under the “one size fits all” conventional/government underwriting standards.
Cushner Capital Group is a brokerage that offers loan programs to borrowers that have the ability to repay their loans and that meet all regulatory lending criteria. These borrowers can now take part in homeownership even though they may have had a life event that affected their credit, or they have verifiable income that needs to be considered outside a standard grid.
Think you may have a bank type loan only to get denied over something unreasonable? Please call us at Cushner Capital Group – 760 845-9035. We help borrowers who do not fit into the narrow bank’s mortgage guidelines!
Follow me on Social Media!